Should You Forget Apple and Buy These 2 Millionaire-Maker Stocks Instead?

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8 hours ago

MercadoLibre continues to post amazing revenue growth as its e-commerce and payments units surge in popularity.
Rocket Lab USA is capitalizing on the fast-growing space economy.
10 stocks we like better than Rocket Lab ›
Is the shine coming off of Apple stock? It's a question I've been asking for years, and, so far this year, Apple is leaving investors disappointed. Its shares have fallen by nearly 20%. That makes it one of the two worst-performing stocks -- along with Tesla -- among the "Magnificent Seven" (Apple, Alphabet, Amazon, Microsoft, Nvidia, Meta Platforms, and Tesla).
So, has the time come for investors to shunt Apple to the side in favor of some new stocks? I think so, and here are two companies I would consider.
First up is MercadoLibre (NASDAQ: MELI).
What's appealing about MercadoLibre is its solid financial performance and the secular tailwinds that could power its growth for years.
MercadoLibre operates the largest e-commerce network in Latin America and has generated $22.4 billion in revenue over the last 12 months. Overall revenue increased at a blistering 37% in its most recent quarter (for the three months ending on March 31, 2025), while net income surged by 44%. Gross merchandise value (GMV) increased 17% overall, while GMV in Argentina alone skyrocketed by 126%.
In addition to its strong e-commerce results, the company's fintech arm, Mercado Pago, continues to grow rapidly. Monthly active users (MAUs) hit 64 million, an increase of 31% from the same quarter last year, showing that the company is rapidly scaling this lucrative business that provides financing options for customers.
Finally, it is important to note that e-commerce in Latin America remains in its early stages, as much of the region is still building out the infrastructure needed to support an e-commerce economy. MercadoLibre is at the forefront, and is rapidly expanding its logistics network to lower its fulfillment costs and expand free shipping wherever possible.
All this said, MercadoLibre stock does carry some risk. Most notably, Latin American economies tend to be volatile. Any economic downturn could quickly cut into MercadoLibre's rapid growth.
Therefore, investors should exercise caution. While MercadoLibre's long-term prospects remain bright, one should be prepared for volatility in the short term.
Then there's Rocket Lab USA (NASDAQ: RKLB).
The company provides small satellite launches using reusable rockets, a similar business model to one of its chief competitors, SpaceX -- although on a much smaller scale. Last year, Rocket Lab launched 16 missions, while SpaceX launched 138.
Nevertheless, there is a growing demand for space launches due to the ever-increasing amount of space-based infrastructure. Consider all the familiar tools that rely on space equipment: meteorological satellites, navigational aides, mapping and reconnaissance equipment, and communication links. As the demand for these tools increases down on Earth, there is a need to deploy more -- and improved -- equipment in space.
Furthermore, there is also a pressing need for military and intelligence equipment in space. As such, Rocket Lab has partnered with the U.S. Department of Defense, Space Force, and various defense contractors.
Turning to the company's stock, Rocket Lab's performance has been excellent. Its stock has advanced by nearly 600% over the last 12 months. The main driver has been its strong revenue growth. Trailing-12-month revenue has increased from $327 million to $466 million, an increase of 43%.
However, the company's lack of profits and negative free cash flow will rule this stock out for some investors. In addition, while the space economy is a new field, it doesn't lack competition. Specifically, SpaceX and Blue Origin -- backed by their deep-pocketed founders of Elon Musk and Jeff Bezos, respectively -- are fierce challengers in this sector.
Notwithstanding these risks, Rocket Lab does present an opportunity for investors who are bullish on the space economy. There will be no shortage of demand for space launches going forward, and if Rocket Lab can continue to deliver successful missions, the company's key metrics -- and stock price -- should continue to soar as well.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Alphabet, Amazon, MercadoLibre, Nvidia, Rocket Lab, and Tesla and has the following options: long July 2025 $425 puts on Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, MercadoLibre, Meta Platforms, Microsoft, Nvidia, Rocket Lab, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Should You Forget Apple and Buy These 2 Millionaire-Maker Stocks Instead? was originally published by The Motley Fool